What is Anchorage
Anchorage is a cryptocurrency company that provides custodial services for institutional investors and high net worth individuals. The company was founded in 2017 by Nathan McCauley and Diogo Monica, both of whom had previously worked in the security industry.
Anchorage’s main focus is on providing secure and reliable custody solutions for institutional investors who want to hold and trade cryptocurrencies. They offer a variety of custody services, including cold storage, multi-signature wallets, and insurance coverage.
In addition to their custodial services, Anchorage also offers a suite of institutional-grade tools and services, including trading, staking, and governance. They aim to make it easy for institutional investors to participate in the cryptocurrency market while maintaining the highest level of security.
Anchorage has received significant funding from top venture capital firms, including Blockchain Capital, Lux Capital, and Andreessen Horowitz, among others. They are headquartered in San Francisco, California, and are licensed as a trust company by the South Dakota Division of Banking.
The history of Anchorage
Anchorage was founded in 2017 by Nathan McCauley and Diogo Monica, both of whom had previously worked in the security industry. The founders recognized the need for secure and reliable custody solutions for institutional investors who wanted to hold and trade cryptocurrencies.
In January 2018, Anchorage announced that it had raised $17 million in a funding round led by Andreessen Horowitz, with participation from Blockchain Capital and Lux Capital, among others. This funding allowed Anchorage to further develop their custody solutions and expand their team.
In January 2019, Anchorage announced the launch of its custodial platform, which offers a range of institutional-grade services, including cold storage, multi-signature wallets, and insurance coverage. The platform was designed to meet the needs of institutional investors who wanted to participate in the cryptocurrency market but were concerned about security and regulatory compliance.
In July 2019, Anchorage became the first cryptocurrency custodian to receive a banking charter from the South Dakota Division of Banking, allowing the company to offer custodial services to institutional clients across the United States. This was a significant milestone for the company and helped to establish Anchorage as a leader in the institutional cryptocurrency custody space.
Since then, Anchorage has continued to expand its suite of institutional-grade tools and services, including trading, staking, and governance. They have also continued to attract significant funding from top venture capital firms, including a $80 million funding round led by GIC and Lux Capital in April 2021.
Today, Anchorage is one of the leading cryptocurrency custodians, serving institutional clients around the world with its secure and reliable custody solutions.
How Anchorage works
Anchorage is a cryptocurrency company that provides institutional-grade custody solutions for digital assets. Here’s how it works:
- Sign-up: Institutional clients can sign up for Anchorage’s custody services through their website. The onboarding process involves identity verification, anti-money laundering (AML) and know-your-customer (KYC) compliance checks, and the establishment of account settings.
- Deposit assets: Once the client’s account is set up, they can deposit their digital assets into Anchorage’s custody. Anchorage uses a multi-signature system, where the private keys are distributed across multiple devices and individuals to minimize the risk of theft or loss.
- Secure storage: Anchorage stores its clients’ assets in a combination of online and offline storage. The majority of the assets are kept in cold storage, which means they are not connected to the internet and are therefore less susceptible to hacks.
- Asset management: Anchorage’s custody platform allows institutional clients to manage their digital assets in a variety of ways, such as trading, staking, and governance. Clients can access these services through Anchorage’s API or through their web-based platform.
- Insurance coverage: Anchorage provides insurance coverage for its clients’ digital assets, protecting them against loss or theft. The insurance policies are underwritten by leading insurance companies and are designed to provide comprehensive coverage for both online and offline storage.
Overall, Anchorage’s custody solutions provide institutional clients with secure and reliable storage for their digital assets, while also offering a range of tools and services to help them manage and grow their portfolios.
Can Anchorage be trusted
As a regulated and licensed cryptocurrency custodian, Anchorage has implemented a range of security measures and best practices to ensure the safety and security of its clients’ digital assets. Here are some reasons why Anchorage can be considered trustworthy:
- Regulatory compliance: Anchorage is a trust company that is licensed by the South Dakota Division of Banking. As a regulated custodian, Anchorage is required to comply with a range of regulations and standards to ensure the safety and security of its clients’ digital assets.
- Industry-leading security: Anchorage has implemented a range of security measures to protect its clients’ digital assets. These include multi-signature wallets, cold storage, insurance coverage, and secure hardware devices. Anchorage’s security practices are regularly audited and tested by third-party security firms to ensure their effectiveness.
- Reputation: Anchorage is widely recognized as a leader in the institutional cryptocurrency custody space. The company has received significant funding from top venture capital firms, and its clients include some of the largest institutional investors in the world. This reputation and track record speak to the company’s commitment to providing secure and reliable custody solutions.
- Transparency: Anchorage is transparent about its security practices and regularly shares information about its custody solutions, including the insurance coverage it provides for clients’ assets. The company is also transparent about its fees and charges, ensuring that clients have a clear understanding of the costs associated with its services.
Overall, Anchorage can be considered a trustworthy cryptocurrency custodian, with a strong reputation for security, regulatory compliance, and transparency.
Does Anchorage charge a fee
Yes, Anchorage charges fees for its custody and other services. The specific fees charged by Anchorage may vary depending on the type of service and the amount of assets being held or managed. Here are some examples of the fees charged by Anchorage:
- Custody Fees: Anchorage charges a custody fee based on the total assets being held in custody. The custody fee ranges from 0.06% to 0.12% per year, depending on the size of the account and the assets being held.
- Trading Fees: Anchorage also offers trading services for its clients, and charges a trading fee based on the volume of trades. The trading fees range from 0.1% to 0.2% per trade, depending on the volume.
- Staking Fees: Anchorage offers staking services for certain digital assets, and charges a staking fee based on the amount of assets being staked. The staking fees vary depending on the asset being staked.
- Withdrawal Fees: Anchorage charges a withdrawal fee for clients who want to withdraw their digital assets from the custody platform. The withdrawal fee varies depending on the asset being withdrawn.
It’s worth noting that Anchorage’s fees are competitive with other institutional-grade cryptocurrency custodians in the market. Additionally, Anchorage is transparent about its fees and charges, ensuring that clients have a clear understanding of the costs associated with its services.